When filing your caregiver taxes, ensure that they are done right the first time, and avoid using frowned upon practices. By taking part in these frowned upon practices, you will cause yourself headaches with the Canadian Revenue Agency and the government. Tax4Nanny is here to help you make your caregiver taxes simple and effortless.
One of the most basic rules for filing caregiver taxes is to avoid hiring illegal aliens. You may want to help someone out, but you are putting yourself at risk by hiring someone illegally. If you are caught, not only will you be forced to pay taxes, but you may be investigated by Immigration Canada and other government agencies. Avoid making this mistake and ensure that your caregiver is legal and eligible to work in Canada.
Another common mistake frequently made by employers is not collecting for CPP, EI, and other federal tax services. Employers think it will be easier to pay it all at the end of the year, but in reality, this isn’t an easier way to take care of your caregiver taxes. Always collect money from each paycheck in order to protect yourself from unforeseeable events.
Do not, under any circumstances, pay your caregiver under the table. Yes, this sounds easy, and it may require less effort, but being audited by the CRA will consume a lot of time and resources that could have been saved if you properly completed your caregiver taxes. If you are intimidated by the thought of doing caregiver taxes, hire a nanny tax service like ours to take care of it for you. It’s that simple.
Tax4Nanny provides a comprehensive service that helps employers quickly complete their caregiver taxes with ease. We offer our service to clients in Toronto, the GTA, Ontario, and all of Canada. If you have any questions, please feel free to contact us today.